Missouri Payroll Tax Guide (2026)

Missouri moved in two directions at once for 2026: the minimum wage jumped to $15.00 under Proposition A, while the unemployment taxable wage base actually fell from 9,500 to $9,000, so wage cost rose as the unemployment tax ceiling dropped.^[3]

10 min read • Reviewed by Rajanikant Patel CPA • Verified Oct 1, 2026 • Sources: DOR, DES, IRS

Quick Facts

Missouri payroll at a glance

Missouri employers handle two state payroll taxes plus a local layer: income tax withholding up to 4.7% taken from employees, employer paid unemployment tax on the first $9,000, and city earnings tax in St. Louis and Kansas City.^[3]

State income tax withholding

2.00%–4.70% ^[1]

UI taxable wage base

$9,000 per employee ^[3]

New employer UI rate

2.376% ^[3]

Experienced UI rate range

0.00%–6.00% ^[3]

Employee-paid state payroll tax

None ^[3]

Social Security wage base

$184,500 ^[2]

FUTA net rate

0.6% = $42 per employee ^[12]

State minimum wage

$15.00 per hour ^[7]

Local minimum wage ordinances

None ^[7]

UI registration trigger

Paying $1,500 in wages, cash or in kind, in a calendar quarter, or having… ^[3]

Exempt salary threshold

$35,568 per year ^[11]

Additional Medicare threshold

Over $200,000, employee only ^[3]

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What changed for Missouri payroll in 2026

Six items moved for Missouri employers this year. Anything below is what have changed since the 2025 tables, so a rate card carried over from last year will be wrong in at least one place.

Minimum wage now 15.00 Tipped cash wage 7.50 UI wage base fell to 9,000 Top income tax rate 4.7% New employer rate 2.376% Paper wage reports gone

Missing the city earnings tax on remote workers: The Kansas City and St. Louis earnings taxes are 1% and the employer is expected to withhold them. Kansas City reaches every resident even when the work happens outside the city, and St. Louis reaches anyone employed by a business located in the city. An employee who moved into either city without telling payroll leaves the employer short on withholding and facing a catch-up assessment.

Estimate

2026 Missouri payroll tax calculator

Enter one employee’s annual gross wages to see what the employer owes, what comes out of the paycheque, and the true cost of employment.

Missouri · 2026 rates · per employee, per calendar year

Annual gross wages ($)

Cash wages subject to payroll tax, before any withholding.

Your UI contribution rate

Your exact rate is on the annual tax rate determination, mailed between mid-November and the end of December.

Custom UI rate (%)

FUTA basis

FUTA is 6.0% less a 5.4% credit where the state has no outstanding federal loan.

Employer pays

UI, on first $9,000–

FUTA, on first $7,000–

Social Security, 6.2%–

Medicare, 1.45%–

Employer payroll tax–

Withheld from the employee

Social Security, 6.2%–

Medicare, 1.45%–

Additional Medicare, 0.9% over $200,000–

Withheld from employee–

True cost of employment–

Employer tax as % of wages–

Total payroll tax, both sides–

State income tax withholding is not included above: it depends on the employee’s Form MO W-4 and filing status, so it cannot be estimated from gross pay alone.

Rates & Nexus

Payroll tax rates & the nexus question

Missouri runs two state payroll taxes. The table below is the whole state layer for 2026.^[3]

The state payroll taxes

Tax	Paid by	2026 rate	Wage base
UI	Employer	0.00%–6.00%; 2.376% new	$9,000
Income tax withholding	Employee	2.00%–4.70%	No limit

New employers in mining, construction and all other industries pay 2.376% for 2026, and new 501(c)(3) nonprofits that elect to contribute pay 1.00%. Experience rates run from 0.0 to 6.0% before any maximum rate surcharge, which can never exceed 1.5% in a year, and before any contribution rate adjustment keyed to the trust fund balance.^[3]

Supplemental wages have their own rate. Bonuses, commissions and other supplemental payments are withheld at 4.70% when paid separately from regular wages. That is a state rate only; federal supplemental withholding is a separate 22% layer.^[1]

Who has to register

Paying $1,500 in wages, cash or in kind, in a calendar quarter, or having a worker for some portion of a day in each of 20 different weeks in a calendar year. Agricultural employers become liable at $20,000 in cash wages in a quarter or 10 workers across 20 weeks, household employers at $1,000 in cash wages in a quarter, and 501(c)(3) organizations at four or more workers in 20 weeks. Notify the Division within 30 days.^[3] Income tax withholding is administered separately by Missouri Department of Revenue, so most employers end up with two state account numbers, not one.

Multistate and remote employees

When an employee works in more than one state, the four-part test below decides which state the wages are reported to. The tests run in order: you stop at the first one that gives an answer.

1. Localisation of service→
2. Base of operations→
3. Place of direction & control→
4. Employee’s residence

One remote employee is usually enough. A single person working from home in Missouri generally creates an obligation to register and report wages here, even if the business has no office, property or customers in the state.

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Compliance

Registration & return filing

Registration is online and free. The unemployment account and, where one exists, the withholding account are opened separately and carry different numbers.^[3]

How to register

Cross the wage threshold→
UInteract→
Receive account number→
annual tax rate determination, mailed between mid-November and the end of December→
File & deposit online

Deposit schedule

Frequency is set by how much you withheld over the prior twelve months: quarter-monthly if you withheld $9,000 or more in each of at least two months, monthly at $500 or more in each of at least two months, quarterly at $100 or more in at least one quarter, and annually below that. Monthly filers are due the 15th of the following month, quarterly filers the last day of the month following the quarter, and quarter-monthly filers must file electronically and pay within three banking days of each period.^[1]

Returns, reports & due dates

Form	What it is	Due
Form MODES-4, Quarterly Contribution and Wage Report	Quarterly unemployment return	April 30, July 31, October 31, January 31
Form MO-941 for periodic returns and Form MO W-3, the transmittal of tax statements,…	Income tax withholding returns	Frequency is set by how much you withheld over the prior twelve months
Annual reconciliation	Year-end withholding reconciliation	January 31
Form 941	Federal quarterly return	Last day of the month after quarter end
Form 940	Federal unemployment, annual	January 31
New hire report	Report of newly hired employees	Within 20 days of start date

Quarterly unemployment returns are due April 30, July 31, October 31, January 31. A return filed one day late is delinquent, and in most states the penalty attaches to the return, not the payment.^[3]

Pricing

Payroll Pricing

Simple, transparent pricing, no setup fees, no year-end surprises. One flat charge per pay run.

Your Biweekly Payroll Statement

Line items the big providers quietly bill for

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Setup fee

one-time onboarding

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extra

Every payroll run

each pay cycle

billed
extra

Off-cycle payroll

corrections & bonuses

billed
extra

Year-end filings

W-2s, 1099s & more

billed
extra

All you actually pay

Per employee, per pay run

$6 /emp

Plus a flat $40 minimum per pay run. That’s the whole bill.

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Wage Base

Subject wages vs. exempt payments

Not every dollar an employee receives is a taxable wage. The split below governs what goes into the unemployment wage base and what is reported at year end.^[3]

Subject wages

Salaries, hourly pay, overtime and piece rates
Commissions, bonuses and incentive pay
Most cash tips reported by the employee
Vacation, holiday and paid sick leave when taken as wages
Severance and payments in lieu of notice
The cash value of meals and lodging provided as compensation
Employer contributions to a non-qualified deferred compensation plan

Not subject

Reimbursements of genuine business expenses under an accountable plan
Employer contributions to a qualified retirement plan
Employer-paid premiums for accident and health insurance
Most third-party sick pay after the sixth calendar month
Payments to a genuine independent contractor
Workers compensation benefits

The wage base is per employer, per year, not per job. If you hire someone in August who already earned $9,000 elsewhere, your unemployment clock still starts at zero. The one exception is a successor employer taking over an existing payroll, who inherits the wages already paid.

Reference

Glossary of key terms

Taxable wage base: The slice of each employee’s annual pay that unemployment tax is calculated on. In Missouri that is $9,000 for 2026. Earnings above it are still wages, they are simply no longer taxed for unemployment.
Experience rating: The method Missouri Division of Employment Security uses to set each employer’s own unemployment rate from its history of claims. Employers with fewer charged claims move down the schedule; those with more move up.
New employer rate: The rate assigned before an employer has enough history to be experience rated. It normally applies for two to three years, then the account moves onto the experience schedule.
Form MO W-4: The state withholding certificate. It sets how much income tax comes out of each cheque and is filed with the employer, not with Missouri Department of Revenue.
Reserve account: The running balance of contributions an employer has paid in, less the benefits charged against it. The ratio of that balance to taxable payroll is what drives the assigned rate.
Successor employer: A business that acquires another’s payroll may inherit both its experience rate and the wages already paid toward the wage base for the year. Getting this wrong is a common acquisition error.
Localisation of service: The first of four tests deciding which state a multistate employee’s wages are reported to. If substantially all the work is in one state, that state wins and the remaining tests are never reached.
FUTA credit reduction: A reduction in the 5.4% federal unemployment credit applied to states that have carried an outstanding federal loan for two or more consecutive Januaries. It raises the effective FUTA rate and is settled each November.
Supplemental wages: Bonuses, commissions, awards and similar payments made outside the regular payroll cycle. Many states set a separate flat withholding rate for them.
Local withholding: Income or occupational tax levied by a city, county or school district and withheld by the employer alongside state tax. It is assessed separately from the state layer.

Federal, State & Local

Missouri payroll tax, layer by layer

Federal tax applies everywhere and is the larger number. The state layer is what changes when you cross a border.

Layer 1: Federal

Tax	Rate	2026 base
Social Security	6.2% each side	$184,500
Medicare	1.45% each side	No limit
Additional Medicare	0.9% employee only	Over $200,000
FUTA, standard	0.6% net	$7,000
Federal income tax	Per Form W-4	No limit

Missouri has no FUTA credit reduction for 2026, so the standard 0.6% net rate applies, $42 per employee. The final list is not published until 10 November 2026.^[12]

Layer 2: State

Tax	Rate	2026 base
UI, new employer	2.376%	$9,000
UI, experienced	0.00%–6.00%	$9,000
Income tax, standard	2.00%–4.70%	No limit
Income tax, supplemental	4.70%	No limit

Layer 3, county & city: a real third layer

Two Missouri cities levy a 1% earnings tax that employers are expected to withhold. Kansas City taxes the earned income of every resident wherever they work, plus non-residents on income earned inside the city, and exempts retirement income, active military in combat zones and non-profits. St. Louis applies its 1% to residents wherever they work and to employees of businesses located in or performing services within the city, with employer withholding returns due quarterly on January 31, April 30, July 31 and October 31. St. Louis also imposes a separate payroll expense tax on employers.^[9]

The state minimum wage is $15.00 an hour, effective 2026-01-01. The tipped cash wage is $7.50. No local ordinance sets a higher floor. Tipped employees must receive at least 50% of the minimum wage in cash, so $7.50, plus whatever is needed to bring total compensation to $15.00 an hour. Retail and service businesses with annual gross income under $500,000 are not required to pay the state minimum wage. Overtime is due after 40 hours in a week.^[7]

Overtime exemption is a separate test. A salaried employee is exempt from overtime only above $35,568 a year ($684.00 a week) federal FLSA, and only if the duties test is also met. Paying a salary is not by itself enough.^[11]

FAQ

Missouri payroll FAQs

Missouri withholds on a graduated scale running from 2.0% to a top rate of 4.7% for 2026, applied after the standard deduction built into the withholding formula. For supplemental wages such as a bonus you may instead withhold a flat 4.7%. Every employee must file Form MO W-4, and a copy goes to the department within 20 days of hire.

The taxable wage base fell from $9,500 in 2025 to $9,000 for 2026, so the same rate now applies to $500 less of each employee’s wages. A new employer at 2.376% pays a maximum of about $214 per employee for the year.

Both cities levy 1%. Kansas City taxes residents on all earned income wherever they work, plus non-residents on income earned within the city. St. Louis taxes residents wherever they work and employees of businesses located in or performing services within the city. St. Louis employer withholding returns are due quarterly on January 31, April 30, July 31 and October 31.

The rate is $15.00 an hour from January 1, 2026. Tipped employees must be paid at least $7.50 in cash, which is 50% of the minimum, and the employer adds whatever is needed to reach $15.00. Retail and service businesses with annual gross income under $500,000 are exempt from the state rate.

Yes. Employers who file and pay withholding on time may keep a compensation deduction of 2% of the first $5,000 withheld in a year, 1% of the next $5,000, and 0.5% of anything above $10,000. It is claimed on Form MO-941 and is lost on a late return or a late payment.

Within 30 days of becoming liable. Liability starts at $1,500 of wages in a calendar quarter or a worker in 20 different weeks of a year. Agricultural employers start at $20,000 in a quarter or 10 workers across 20 weeks, household employers at $1,000 in a quarter, and 501(c)(3) organizations at four or more workers in 20 weeks. Register through UInteract or on Form MODES-2699-AI.

$9,000 per employee per calendar year. Once an employee reaches that in wages from you, no further unemployment tax is due on that employee for the rest of the year. The count restarts on 1 January and does not carry over from a previous employer.

$15.00 an hour. No local ordinance sets a higher rate. The tipped cash wage is $7.50.

April 30, July 31, October 31, January 31. A return is delinquent the day after the deadline even if the tax itself was paid on time, so file the return whether or not you can pay.

Verification

Sources & methodology

Methodology: every rate, threshold and due date on this page was taken from the administering agency’s own published material for the 2026 tax year, checked on Oct 1, 2026. Where a federal figure applies it comes from the IRS, SSA or US Department of Labor. 4 data points on this page could not be confirmed against a primary source and are either omitted or marked as not published, rather than estimated. Rates change, and some change mid-year, so confirm against your own rate notice before running a payroll.

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